Swiss mining company Xstrata Plc (XTA.L,XSRAY.PK,XSRAF.PK) said Thursday that it has no intention of making an offer for the diversified mining group Anglo American Plc (AAL.L,AAUKY.PK, AAUKF.PK). Earlier this month, Anglo, through the UK Takeover Panel, had set October 20 as deadline for Xstrata to either announce a firm intention to make, or not make, an offer for Anglo American. Anglo noted at that time that the deadline was set in the interests of the group and its shareholders, as Xstrata had four months to either announce a formal offer or to withdraw from the merger proposal.
Mick Davis, chief executive of Xstrata said today, "Our decision not to proceed with an offer before the deadline imposed by the UK Takeover Panel reflects our disciplined approach to growth and our focus on the value proposition for Xstrata's shareholders in a merger. We continue to assess a range of alternative growth options, in full recognition that transactions of this nature often take time and patience to mature."
It was on June 22 that Xstrata sent a proposal to rival Anglo American seeking its consideration regarding a merger of equals of the two companies, which could create a company with about $68 billion market cap and help compete better against mining giants Rio Tinto (RTP, RIO.L) and BHP Billiton (BHP, BLT.L). Through the merger, Xstrata intended to gain control of the world's biggest platinum producer, and access to its iron ore mines. Also, Anglo American owns a 45% stake in De Beers SA, the world's largest diamond company. Synergistic opportunities were seen through the merger of the two companies' coal assets in Australia and South Africa as well as their copper mining operations.
Xstrata had said that the merger would deliver over US$1 billion of quantified pre-tax synergies per annum by the third full year following completion, together with superior competitive positioning, scale and diversity. However, Anglo's board unanimously rejected Xstrata's proposal, stating it was 'unattractive' and 'unacceptable' and was not in the best interests of its shareholders. On June 24, Xstrata urged again the board of Anglo American to reconsider the merger deal, projecting the benefit of US$1 billion in synergy, while Anglo's board reiterated on October 2, its emphatic rejection of Xstrata's approach and expressed that its view has not changed. "My letter to the Board of Anglo American was intended to commence confidential discussions to explore the potential to merge Xstrata and Anglo American and create a new mining super-major with the scale and diversity to compete in the evolving global mining sector. It is regrettable that the Board of Anglo American immediately rejected our approach, without engaging with Xstrata to investigate the potential to create more value than either company could alone," added Mick Davis.
In another development, Xstrata Coal announced that it has received Xstrata Plc Board approval for the full implementation of the ATCOM East Project in South Africa, at a capital commitment of about US$407 million. Accordingly, the new ATCOM East Project will be integrated into the existing Xstrata Coal South Africa ATCOM infrastructure and produce about 5.7 million tonnes per annum of run of mine production and 3.1 million tonnes of saleable thermal product for domestic and export markets annually, the company said.
XTA.L is currently trading at 1,017 pence, down 14 pence or 1.36%, on a volume of 5.66 million shares. XSRAY.PK closed Wednesday's regular trading at $3.39, while XSRAF.PK ended at $16.49 on the OTC. AAL.L is currently trading at 2,248.5 pence, down 62.5 pence or 2.7%, on 2.83 million shares. AAUKY.PK closed Wednesday's trade at $18.41, while AAUKF.PK last traded on Oct. 13 at $34.45 on the OTC.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.